Recent data from the Nigerian Bureau of Statistics (NBS) has revealed a notable decline in the country’s average daily oil production. The statistics indicate that Nigeria recorded an average daily oil production of 1.22 million barrels per day (mbpd), marking a decrease of 0.22 mbpd compared to the same period last year and a drop of 0.29 mbpd in the first quarter of this year.
In the second quarter of the previous year and the first quarter of this year, daily oil production stood at higher levels, averaging 1.43 mbpd and 1.51 mbpd, respectively.
The NBS data also sheds light on the real growth of the oil sector, showing a year-on-year growth of 13.43 percent in the second quarter of 2023. This figure signifies a decrease of 1.66 percent points when compared to the rate recorded during the corresponding quarter of 2022, which stood at -11.77 percent. The sector’s growth rate also exhibited a decline of 9.22 percent points in comparison to the first quarter of 2023, where the growth rate was reported as -4.21 percent.
In terms of quarterly performance, the oil sector experienced a growth rate of -14.12 percent in the second quarter of 2023. This sector contributed 5.34 percent to the total real Gross Domestic Product (GDP) in the second quarter of 2023. This contribution rate is down from the figures recorded during the corresponding period of the previous year and is also a decrease from the preceding quarter. In the same period of last year, the oil sector’s contribution was 6.33 percent, and in the preceding quarter, it stood at 6.21 percent.
The data underscores the challenges faced by Nigeria’s oil sector, including fluctuating production levels and varying contributions to the nation’s GDP. These shifts have implications for Nigeria’s economic stability and development strategies.
As Nigeria navigates these dynamics, experts and policymakers are expected to work collectively to address the sector’s challenges and explore opportunities for sustainable growth and development.